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Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation
Monday March 18, 2019
10 AM – 12 PM

2. L
Cycle Time Must Be Less Than Lead Time

3. Cycle Time (CT) is the Time Required to Execute Activities in a Process
This could be
A single step or operation
A group of operations
Customer order to customer delivery
Any in-plant process can be measured
estimates
print production
mailing
Cycle time includes actual processing time, movement time, and waiting time

4. L What Makes Cycle Time High? Product flow variability
How Do You Become Faster? L
Product flow variability
Reduce Variability
Inventory or work in process (WIP)
Reduce & Manage the WIP
Complexity of processes
Simplify the Process 6

5. How Do We Measure Cycle Time?
Theoretical Time
One product through from start to finish with no WIP
Dynamic Cycle Time (Little’s law):
Cycle Time =
WIP
Throughput
Any Lean journey strives to minimize waste and increase speed. Increasing speed equates to reducing lead time to your customers. Minimizing waste includes an analysis of inventory on-hand and steps to reduce that inventory. Little's Law provides an equation for relating Lead Time, Work-in-Process (WIP) and Average Completion Rate (ACR) for any process. Named after the mathematician who proved the theory, Little's Law states:
Lead Time = WIP (units) / ACR (units per time period)
Knowing any two variables in the equation allows the calculation of the third. Reducing WIP while maintaining the same ACR reduces lead time. Similarly, improving the process to increase ACR while maintaining the same WIP also reduces Lead Time. This applies to any process - manufacturing, transactional, service or design. If it is difficult to relate WIP to a given process, try using TIP instead (Things-in-Process).
Example: A quoting department can complete 4 quotes per day (ACR), and there are 20 quotes (TIP) in various stages in the department. Applying Little's Law:
Lead Time = TIP/ACR = 20 quotes/4 quotes/day = 5 days.
Therefore, without changing the process, inventory or priorities - or accounting for variation - any new quote coming into the department could reasonably be expected to be completed in 5 days. 6

6. L L6∂ Seven NVAs – The Evil of WIP Waste Types Description
Overproduction
Producing more, sooner, faster than required by the next process
Transportation
Any movement that does not add value to the product
Inventory
Maintaining excess inventory
Processing
Doing more work than necessary
Waiting
Operator or machine idle time
Correction
All repairs to product to fulfill conformance
Motion
Any wasted motion to pickup parts or stock parts. Wasted walking.
Lean improves processes by eliminating waste (non value added activities)
Of the seven NVA evils- WIP encompasses 4 of them

7. T I OE Little's Law Lead Time = WIP / Average Completion Rate
150 books in progress / 75 books produced in one shift = 2 Days Lead Time T
As throughput increases, the other two decrease, as bottlenecks are removed, throughput increases
Throughput
Inventory
Operating
Expense $
coming in $
tied up $
going out I OE

8. Why is Cycle Time Important?
To be COMPETITIVE:
Cycle Time < Lead Time (Customer Requirement)
Must be able to meet the customers requirement – lead time
Shorter Cycle Times provide
Huge competitive advantage
Greater throughput- can do more with existing resources and time
Provides fast lead times for customers
Reduced manufacturing costs
Can be a in-plant saver

9. Exercise L
Examine how your process “responds” to the voice of the customer
Understanding cycle time and how we measure it
Understanding the importance of reducing cycle time
Learning various techniques (tools) to identify and reduce “waste”
Use an example to analyze and study L concepts

10. Cell 1 Clip Put white sheet on top of cover
Center white sheet to top and bottom of cover sheet
Pass to next station

11. Cell 2 Highlight Highlight black dotted line
Make sure highlight encompasses all of black dotted line
Pass to next station

12. Cell 3 X and O
In pen, draw a circle within the dotted lines, making sure your pen does not touch or pass dotted line, and that the circle completes itself
With a ruler connect the dots in an X, make sure your lines do not pass or come short of the dots
Pass to next station

13. Cell 4 Labeling Over dotted line, write this exactly
PsP 2019
Pass to next station

14. Cell 5 Testing Detach paper clip Take white sheet off of cover
QC for Conformance:
Highlight over line
Circles within dotted lines
Circle closes itself
Dots are connected with clean straight lines
Lines do not go past or come short of the dots
Make two piles – one for good the other for bad

15. Cell 5 Testing L6σ Vernacular Good is called Conformance
Bad is called Non-Conformance
Conformance means that you are conforming to the requirements of the voice of the customer - VOC
First and foremost our processes must be in conformance to the VOC.
Testing cell make sure you report back to your group and leader non conformance issues so they can be remedied

16. Cell 6 Testing For testing cell only
When you get the salmon sheet you tell the timekeeper stop and your team stops
For the rest of the cells, when you see the salmon sheet you must keep producing, only stop when testing cell says stop

17. Table Layout- 10 people per table#1 #3 #5 #7 #9
Employee
Clip
Highlight
X and O
Labeling
Testing #2 #4 #6 #8
#10
Employee

18. EDU Staff Clip Highlight X and O Labeling Testing
One EDU staff member per table. They keep time and after one minute insert salmon sheet on top of clip cells white sheets. When production stops, they gather WIP for each cell, and the number of good and bad products- report data to Gordon.
Clip
Highlight
X and O
Labeling
Testing

19. FIFO- First In First Out
CLIP
HIGHLIGHT
HIGHLIGHT
X AND O
Downstream cells always start by taking from the top of the pile.
If there are multiple piles, keep the first pile towards you

20. Record Keeping

21. X/O Exercise L
Round 1
Push System

22. L Push System Discussion : Round 1
LOT 9
LOT 4
LOT 7
LOT 3
LOT 10
LOT 6
LOT 2
LOT 11
LOT 8
LOT 5
LOT 1
OPER A
OPER B
OPER C
OPER D
A system where work is performed to a schedule or plan
and sent to the next process
without regard to demand from that process

23. Discussion : Round 1 L
How Does WIP affect Cycle Time?

24. X/O Exercise L
Round 2
Pull System

25. L Push vs. Pull Systems PUSH SYSTEM etc.. PULL SYSTEM OPN A OPN B
A system where work is performed to a schedule or plan and sent to the next process without regard to demand from that process
LOT 9
LOT 3
LOT 4
LOT 7
LOT 6
LOT 2
LOT 10
LOT 11
LOT 8
LOT 5
LOT 1
OPN A
OPN B
OPN C
OPN D
etc..
LOT 4
LOT 3
LOT 2
LOT 1
PULL SYSTEM
OPN A
OPN B
OPN C
OPN D
system where work is performed only when the next process has capacity to consume it 19

26. Discussion : Round 2 L
Identification of the bottlenecks

27. L Round 2 Rules Each cell makes a product in batches
Once your identified cell batch is made you stop until the next cell takes your batch then you can make another batch- the downstream process determines rate of throughput
Batches for each cell (assuming 2 employees per cell):
Clip – in batches of 2 (1 per employee)
Hilight – in batches of 2 (1 per employee)
X and O – in batches of 4 (2 per employee)
Labeling – in batches of 4 (2 per employee)
Testing – in batches of 2 (2 per employee)

28. X/O Exercise L
Round 3
Custom

29. Round 3 Rules L
Your leader leads your group in developing a new improved process
No rules, just make the product in conformance
Improvement means:
Simplify the process
Correct problems with:
WIP
Waiting
Transportation
Non-conformance

30. L Discussion : Round 3 Are there still bottlenecks? How was your WIP?
Did your group improve from Round 2?
What would your improvement plan be if we did another round?

31. Determining Cycle Time in PSP
You can use PSP to locate the gap in your lead and cycle time using the Order Turnaround Time report

32. L
Maximizing Resources: Applying Lean Six Sigma Principles to Your Print Operation
QUESTIONS